Saint Lucia Set To Embrace Electric Vehicles

It’s unlikely that Saint Lucians will ever see Elon Musk cruising around Castries in a Tesla, but electric vehicles will be making their way onto the island’s roads in the near future under a new US$ 33mn initiative that aims to transform transportation. The Global E-Mobility Program hopes to introduce a small fleet of electric buses to routes around Saint Lucia’s urban areas by 2024 – eventually paving the way for more public and private ownership of the innovative vehicles. The four-year project is an international and regional partnership, implemented by the United Nations Environment Programme, financed by the Global Environment Facility (GEF) and delivered by Saint Lucia’s Ministry of Sustainable Development, Energy, Science and Technology.

Saint Lucia is one of only three Caribbean nations participating in the 17-country scheme, joining Jamaica and Antigua and Barbuda in blazing a trail for the region and hopefully acting as a template for cleaner transportation in developing countries around the world.

Next gen transport

First produced in 1838, electric vehicles (EVs) actually pre-date the standard internal combustion engine cars we’re familiar with today. However, EVs were pushed to the sidelines in the early years of the 20th century as combustion engines were commercialised. 

Advances in technology, combined with a growing appreciation of their environmental credentials, are bringing EVs back into the mainstream. According to the European Environment Agency, EVs will represent more than 60 per cent of new sales by 2050 and comprise a quarter of global vehicles.

EVs produce zero tailpipe emissions, thereby reducing air pollution and improving air quality. They are also 60-80 per cent more energy efficient than their fossil fuel-burning counterparts. Given the Caribbean’s potentially ruinous reliance on fossil fuels, EVs seem a perfect fit for islands struggling to develop a greener transportation infrastructure.

The technology should not be considered a climate cure-all, however. While EVs do not produce the same level of emissions as fuel-burning cars, they still run on electricity and are therefore still part of the same problematic energy generation system. “Electric vehicles are only as good and as clean as the electric grid,” explains Filippo Berardi, Senior Climate Change Specialist at GEF. “The transformation and de-carbonisation of the transportation system will have to go hand in hand with the de-carbonisation of electricity generation.”

Berardi believes that the Caribbean is already making strides in this area and says electric vehicles are the next logical step in a region that has already embraced renewables such as solar and geothermal power. “We have seen a lot of interest in e-mobility from small islands like Saint Lucia, and I do not think that is surprising. In an island setting it is even more important to reduce the need for fuel imports, have a more reliable supply of electricity and improve the air quality. All these environmental goals need to be considered together. Islands have an abundance of renewable energy resources available and the cost of fossil fuel imports is probably their biggest public expense, which is carried into the high cost of energy. Renewables like geothermal and solar just make sense and, once you start, there is no turning back. There are still a lot of challenges around them, but that is something we have handed to the private sector for them to continue. We are moving on to the next frontier which we think is transformation of transport.

“The sooner you start greening your fleet, the sooner you can start taking advantage of renewable resources on the generation side. We need to take a holistic approach to de-carbonisation. It is two sides of the same coin.”

A new transport roadmap

GEF is committed to helping countries map out this holistic approach. The initial stages of Saint Lucia’s e-mobility project involve assessing its economic viability, and developing a regulatory policy and financial models. Stakeholders will be supported along the way by both a regional platform and global thematic working groups looking at topics such as how to safely dispose of the lithium-ion batteries used in EVs, integration with the national grid and creating a network of charging stations. 

“Providing that framework and technical and financial input is the main nature of this initiative,” says Berardi. “There is a lot to learn from sharing experiences between different countries. We have a global component that provides an umbrella framework for all of the different national projects, each of which is tailored to the national circumstances to recognise the different countries’ starting points. We are really looking to create a platform where we can leverage the different experiences and provide tailor-made, locally scalable solutions. We are hoping to replicate lessons learned.”

In Saint Lucia, as in most developing countries, the policymakers are starting with a blank slate and first have to reframe the image that this is a niche sector, only accessible in wealthier jurisdictions. Berardi says: “Electric vehicles generally do not exist in the Caribbean. We try to support the public sector side on how you go about developing this market from scratch. This programme is reliant on a good dose of public action, as well as good planning when it comes to developing the supporting infrastructure. We always start with public transportation. That is the low-hanging fruit. The idea is that electric does not have to be seen as something that is only for the rich.”

One of the biggest hurdles for any government addressing its transportation shortfalls is cost. Electric vehicles are more economical over the long-term but the upfront costs are higher and Berardi would like to see commercial banks and financial institutions chipping in to cover the pricing gap, saying: “We are laying the foundation for something that will require much more funding. We would like to see financial institutions being aware of the opportunities and start introducing products [for those opportunities].”

In the meantime, government is looking at fiscal incentives – taxing imports of internal combustion engine cars and reducing the cost of energy overall as it explores renewable sources. Berardi is hopeful that, by 2024, Saint Lucia will have a “clear roadmap and a clear path to follow”, one that can inspire other Eastern Caribbean nations as developed and developing countries alike embrace a greener future. “Experiences from Saint Lucia will be hopefully valuable from a financial and economic viability model for the entire Caribbean. At some point, you have to start the transition [to clean energy] anyway so future proofing your transportation sector is going to be necessary.”